Kesko’s new, even more challenging emissions reductions targets approved by the Science Based Targets initiative

KESKO INVESTOR NEWS 26.11.2021 AT 11.00 The Science Based Targets initiative (SBTi) has approved Kesko’s new emissions reductions targets with which Kesko commits to the most ambitious aim of limiting global warming to 1.5°C. The Science Based Targets initiative is a collaboration between CDP, the United Nations Global Compact initiative, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

According to the most recent climate report by the Intergovernmental Panel on Climate Change (IPCC), global warming could still be limited to 1.5°C, but this requires rapid actions and goals.

Mitigating climate change is a central part of K Group’s strategy and the Group applies a committed long-term approach to climate action. Our aim is to reach carbon neutrality, and cut emissions from our own operations down to a minimum by 2025, after which we will offset any remaining emissions.

“It is vital to have shared, science-based standards for climate action for companies. In 2017, Kesko was the first company in Finland to set science-based 2°C emissions reductions targets approved by the SBTi for its own operations and supply chain. SBTi has now approved our new, even more challenging 1.5°C emissions reductions targets,” says Matti Kalervo, Kesko’s Vice President of Corporate Sustainability.

The SBTi defines and promotes best practice in science-based target setting and independently assesses companies’ targets. 

Approved emissions reductions targets must be aligned with actions that limit global warming below 2°C above pre-industrial levels, and 1.5°C at the most ambitious level.

“We congratulate Kesko Corporation on setting science-based targets consistent with limiting warming to 1.5°C, the most ambitious goal of the Paris Agreement," says Alberto Carrillo Pineda, Managing Director, Science Based Targets at CDP, one of the Science Based Targets initiative partners. "By setting ambitious science-based targets grounded in climate science, Kesko Corporation is taking action to prevent the most damaging effects of climate change."

Climate targets for Kesko’s own operations and supply chain

Kesko’s updated science-based emissions reductions targets:

  • Kesko Corporation commits to reduce absolute scope 1 and 2 GHG emissions 90% by 2030 from a 2020 base year.
     
  • Kesko Corporation commits that 67% of its suppliers by spend covering purchased goods and services, will have science-based targets by 2026.
     
  • Kesko Corporation also commits to reduce absolute scope 3 GHG emissions from the use of sold products 17% by 2026 from a 2020 base year.

Key measures to achieve these targets include using 100% renewable energy, improving energy efficiency, and switching to biofuels in transports in Finland.

Since 2017, all electricity purchased by Kesko for K Group stores and other Kesko properties in Finland has been produced with renewable energy.

Key tools in improving energy efficiency in stores include modernising refrigerating equipment and lighting, our award-winning heat recycling system, and innovations such as utilising artificial intelligence in analysing a store’s energy consumption.

In 2020, Kesko joined the CDP Supply Chain programme and challenged its suppliers to reduce emissions and report them to CDP.

Further information:
Matti Kalervo, Vice President, Corporate Sustainability, Kesko, tel. +358 50 306 4081, matti.kalervo@kesko.fi
K Group media desk (Mon-Fri 9-16), tel. +358 105 350 200, viestinta@kesko.fi

https://sciencebasedtargets.org/


Kesko and K-retailers together form K Group, whose retail sales total €14 billion. K Group is the third biggest retail operator in Northern Europe and it employs some 39,000 people. Kesko operates in the grocery trade, building and technical trade, and car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners. Kesko's net sales total €11 billion and it employs approximately 18,000 people. Kesko has around 1,800 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania and Poland. Kesko’s shares are listed on Nasdaq Helsinki. The company's domicile and main premises are located in Helsinki. Kesko is the world's most sustainable company in the grocery trade sector (The Global 100 Most Sustainable Corporations in the World). www.kesko.fi

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